Warren Buffett's classic advice to 99% of investors is still paying off
Warren Buffett continues to advocate for low-cost S&P 500 index funds as the most effective investment strategy for the average person. The article highlights the index's recent record highs as evidence that passive, long-term investing outperforms active stock picking.
Why it matters
Buffett's philosophy remains a cornerstone of personal finance, offering a counter-narrative to high-fee active management and market timing.
Warren Buffett has recommended the same investing approach for decades. Andrew Harrer/Bloomberg via Getty Images Warren Buffett famously says that virtually all investors should own a low-cost S&P 500 index fund. The business icon's advice continues to pay off with the S&P 500 hitting a new high on Tuesday. Buffett has said his approach avoids high fees and doesn't require investing smarts or hard work. Warren Buffett says almost nobody can do what he does, so they shouldn't even try. His advice continues to pay off. The legendary investor has proclaimed for decades that 99% of people shouldn't try to pick winning stocks, dabble in options, time the market, or hire a money manager. "My regular recommendation has been a low-cost S&P 500 index fund," the retired Berkshire Hathaway chairman and CEO wrote in his 2017 letter to shareholders.
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